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Home Values and Ownership in Zip Code 62263: Nashville's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Nashville, located in zip code 62263 in Illinois, has experienced notable shifts in its housing market over the past decade. This small city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Nashville has remained relatively stable, with a slight increase in recent years. In 2013, the homeownership rate was 77%, and by 2022, it had risen to 79%. This increase in homeownership coincides with a significant rise in average home prices. In 2012, the average home price was $93,877, and by 2022, it had increased to $156,937, representing a substantial 67% growth over a decade.
The relationship between federal interest rates and homeownership rates in Nashville shows an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), the homeownership rate remained relatively stable, fluctuating between 74% and 77%. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate actually increased to 79%, suggesting that local factors may have a stronger influence on homeownership than national interest rates in this particular market.
Renter percentages and average rent prices in Nashville have shown some volatility. The percentage of renters decreased from 26% in 2015 to 21% in 2022. Interestingly, average rent prices have not followed a consistent trend. In 2013, the average rent was $756, dropping to $618 in 2015, and then rising again to $795 in 2022. This represents a 5% increase in average rent from 2013 to 2022, despite the decrease in the renter population.
Looking at the most recent data, the average home price in Nashville slightly decreased from $156,937 in 2022 to $156,607 in 2023, before increasing to $162,412 in 2024. This recent uptick occurs despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating a resilient local housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Nashville will continue to rise, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $185,000 to $190,000. For average rent prices, the forecast suggests a steady increase, potentially reaching $850 to $900 by 2029.
In summary, Nashville (zip code 62263) has demonstrated a robust housing market with increasing homeownership rates and substantial growth in average home prices over the past decade. The rental market has shown more variability, with decreasing renter percentages but overall increasing average rent prices. Despite recent increases in federal interest rates, the local housing market appears to remain strong, with continued growth expected in both home prices and rental rates over the next five years.
